US President Donald J. Trump has signed an executive order to conduct a review of industrial defence bases in the country.
The 270-day review will be conducted by the US Secretary of Defense, in coordination with the Secretaries of Commerce, Labor, Energy, and Homeland Security.
The executive order sought to evaluate which military and civilian materials and other goods are essential to national security.
It also calls for the identification of manufacturing capabilities that are essential to produce the goods vital for defence purpose.
The review will also identify contingencies that may disrupt, strain, compromise, or eliminate the supply chain of goods.
The assessment will also cover the manufacturing capacity of the US and the physical plant capacity of the defence industrial base, including the ability to modernise to meet future needs.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIt will also identify gaps in national-security-related domestic manufacturing capabilities, including non-existent, extinct, threatened, and single-point-of-failure capabilities.
The executive order has been issued as a loss of more than 60,000 American factories, key companies, and almost five million manufacturing jobs since 2000 threatens to reduce the US manufacturing capacity and capability to meet national defence requirements.
The loss of additional companies, factories, or elements of supply chains could further reduce the US's domestic capacity to create, maintain, protect, expand, national security capabilities.
The review will be carried out in consultation with numerous officials, including Secretaries of the Interior and Health and Human Services, the Director of the Office of Management and Budget, the Director of National Intelligence, the Assistant to the President for National Security Affairs, the Assistant to the President for Economic Policy, and the Director of the Office of Trade and Manufacturing Policy.